Shortlink for '5 Common Gaps in Car Insurance Coverage'

Do you know what your auto insurance policy covers? You may think you’re getting enough coverage for your auto insurance, but you may be leaving out coverage that could leave you vulnerable later on. Even it you think you have ‘full coverage’, it’s important to understand your policy and speak with an insurance professional to avoid costly gaps in coverage.

Take a look at these five common gaps in car insurance coverage.

1. No Collision or Comprehensive.

Often considered optional, collision and comprehensive should be part of your overall policy because they cover damage to your vehicle. With the median cost of a new vehicle exceeding $30,000, it’s foolish to not have collision and comprehensive coverage.

While collision will cover you if your car is damaged in an accident with another car or stationary object, or even if it’s hit while parked. Comprehensive covers repair to or replacement of your car when damaged by non-accident-related occurrences such as theft or ‘acts of God’ such as storms, fires, or an impact with an animal.

While usually these types of coverage are offered separately, some companies offer them as combined physical damage coverage. An exception to purchasing this coverage may be if you have an older car that isn’t worth much. However, collision and comprehensive insurance do tend to go down in cost as a car ages.

2. No Roadside Assistance.

If you don’t have this line item in your policy, you won’t be covered for basic emergency services, such as towing, locksmith service, jump starts and flat tire repair. Some insurance companies such as Liberty Mutual include roadside assistance as part of any auto policy. However, the amount of coverage may be limited. You may also consider purchasing roadside assistance through groups like AAA.

3. No Gap Insurance.

Gap coverage comes in handy when you owe more money than your vehicle is worth. If you get in an accident and your car is deemed totaled, the difference between the appraised value of the car and the amount you owe will be covered with gap protection. Don’t make the mistake of thinking your new car is worth what you paid for it. As soon as you drive it off the lot, it’s a used car and the market value is adjusted accordingly.

4. No Lost Wages Coverage.

This coverage usually included with Personal Injury Protection or ‘PIP’ is designed to help pay a portion of the lost wages for drivers or passengers injured as the result of an accident regardless of fault.

If you are not at fault for the accident, you can still make a claim for reimbursement for all lost wages against the other driver has insurance. Until then, you’re left holding bills you may not be able to pay if you don’t have this type of coverage on your plan.

5. No Rental Reimbursement coverage.

You’ll have to pay for your own rental car if you’re in an accident if you opt out of this coverage. Again, the other driver who is at fault will have to pay for your rental car fees, but this could take awhile and can be a long, slow process.

Until that payment comes through, you’ll have to foot the bill for that expensive rental you needed while your own car was in the shop.

Not having enough coverage could lead to higher pay-outs later if you’re in an accident, are unable to work or your car breaks down on the side of the road. Make sure you get adequate coverage to protect yourself for all the risks driving presents.

Shortlink for 'Are Mandated Fees For Not Having Auto Insurance Coming Next?'

There are over 30 million uninsured drivers currently in the United States. Due to accidents caused involving uninsured drivers, the White House is moving to solve the problems caused by uninsured drivers.

Accidents due to uninsured drivers are costing $2.6 billion in total uninsured motorist claims, and there are a number of solutions being proposed in the legislative branch to resolve them.

The Harder Approach: Penalizing Uninsured Drivers

In Missouri, as well as other states, moves are being made to insure that innocent uninsured drivers cannot sue in court if they are injured. This means that if you don’t have insurance and you are not at fault, you will not be able to sue for damages at all.

The laws are designed primarily around reducing the total cost of uninsured motorist claims, but if you’re injured in an accident to an insured driver, you’re at an immediate disadvantage.

Overseas, there are places where enforcement of uninsured drivers is much stricter. In England, the police have cracked down on uninsured drivers by seizing their vehicles. Among the vehicles that have been seized is a Lamborghini Aventador worth £400,000.

The Softer Approach: Helping Uninsured Drivers Get Insured

In California, as well as states who are following their lead, the approach is very different. California has has introduced legislation to make automobile insurance affordable for everyone.

Because many people who don’t have insurance simply can’t afford it, this is good news for those who either lost automobile insurance do to its cost or haven’t insured their vehicle due to the high costs of insurance. While reducing the total cost of claims nationwide, it also helps drivers who know the importance of having insurance while not being able to afford it.

The Importance of Getting Insured: For Uninsured Drivers

While the reality of the costs of uninsured motorist claims is being dealt with on both sides of the legislative arena with different– but complimentary– approaches, the simple truth is that if you’re on the road without insurance right now, you could be seconds away from a life-changing injury for which you may not be prepared.

It’s important for uninsured drivers to find the most affordable and practical way to insure their vehicle in short order, regardless of where they live. It’s no longer about the insured driver getting hurt in the accident– it’s about being prepared for every eventuality.

Shortlink for 'How to Find the Best Car Insurance Company'

When shopping for car insurance, there are dozens of companies to choose from. With all the claims of saving hundreds, vanishing deductibles, and coverage to choose from, it can become really overwhelming choosing one to go with.

How is it possible to choose the best car insurance company out there? Ultimately, it’s important to go with the company that best suits your budget, needs or preferences. Here are a few things to look out for:

Understand Coverage

The first step is to understand the types of coverage you need. Research and talk to others about what coverage is required in your state and how to best protect your vehicles and financial assets. Once you have a firm understanding of your coverage needs, you can move onto the next step.

Do a Background Check

You want to make sure that the insurer you ultimately choose is solid. First, the insurer must be licensed by the state in which they sell insurance. Secondly, measure the insurer’s financial health by checking the ratings provided at the website of financial services companies like Standard & Poor’s, Fitch Rating Inc., and A.M. Best.

And third, check consumer complaint ratios; an insurer that is a member of the Better Business Bureau and has a high rating is a big plus. You may also want to consider reputable online sources such as financial websites and Consumer Reports. Also talking to others you trust is a good way to get input on their recommendations and experiences.

Get Quotes

Once you know your state requirements and the type of coverage you need and you’ve done your homework, it’s time to shop for insurers. Start off with getting quotes from a hand full of companies. You can get quotes from a visit a website that specializes in obtaining and providing auto insurance quotes. That way, you do not need to go from one insurer to another to do so.

You can consider a captive agent, who works as an exclusive representative for an insurance company; a broker, who works with multiple companies; or the insurance company itself. Also consider companies that specialize in providing coverage to military members and their families or companies in only a limited geographic area.

Compare Rates and Coverage

Now it’s time to reassess the quotes you have obtained—either from the comparison websites or directly from the insurers. While it is easy to focus on the quotes themselves, it is important to actually focus on the final price, which is determined after all discounts and vital information are factored in.

Make sure you’ve added and received all the discounts you’re eligible for and don’t forget to do your homework on their level of customer service. The last thing you want is to have coverage from a company that isn’t helpful in your time of need.

Making the Decision

After you’ve considered the above factors, it’s decision time. Speaking with an insurance agent or representative might be the best way to confirm rates and for you to make your decision.

One nice things about auto insurance is that usually policies can be cancelled at any time so if you find a better rate or another company you want coverage from down the road, you can always make the switch. Just make sure that your coverage is always in effect.

Shortlink for 'CURE Auto Insurance Review'

New Jersey’s Citizens United Reciprocal Exchange (CURE) Auto insurance is a company in the business of providing auto insurance coverage to consumers at a fair price. The company, based in Princeton, New Jersey, has been in the business since 1990 and employs a not-for-profit business model.

CURE provides automotive insurance which includes the following: bodily injury liability, property damage liability, personal injury protection, and coverage for accidents involving uninsured and underinsured motorists, as well as collision and non-collision coverage.

A Different Kind of Insurance Company

Founder Dr. Lena Chang and co-Founder James J. Sheeran lead the executive management team for CURE. According to the CURE website, the company was founded in in response to auto insurers reluctance to write new auto insurance policies due to low profit margins and legislative constrains.

The company was organized by Reciprocal Management Corporation as what is known as a reciprocal exchange, a type of insurance company consisting of an unincorporated group that pools risk and retains the cost of loss incurred by its subscribers.

CURE’s Strengths

CURE has an A-plus rating from the Better Business Bureau of New Jersey (BBB). This rating is based on several factors including the length of time the company has been doing business, which is nearly 25 years. Other factors that warrant a high rating for NJ CURE include the complaint volume against the company filed with the BBB, handling and disposition of complaints and the existence of sufficient business background information.

The company prides itself with being able to offer insurance products and services regardless of the income status of their customers. The company does not engage in the practice of using credit checks as a risk criteria when determining premium rates for motorists looking for auto insurance coverage. CURE also does not consider occupation, education level, or home ownership in calculating rates, factors most other insurers use.

Limited Coverage Area and Shortcomings?

The solutions that CURE provides for motorists are limited to those drivers located in New Jersey and Pennsylvania only. There is no information available as to whether the company is looking to expand its product offerings to additional states in the foreseeable future. The company’s recent TV commercial has brought it some added attention:

Additionally, according to the BBB, the company received seven customer complaints within the past three years, three of which were received in the last 12 months. The complaints received against the company were in the area of advertising and sales, billing and collection and problems with a product or service offering. Although under no requirement to file, the company is no accredited by the BBB.

The company also entered into a Consent Order with the State of New Jersey Department of Banking and Insurance on January 5, 2011 and paid a fine of $26,000. The Consent Order and fine related to market conduct practices uncovered during a 2008 examination including a high error ratio relative to new and renewal business, failure to properly maintain its company complaint log and other general business practices.

In the insurance world where profits are king and companies discriminate and penalize those considered ‘high risk’, it’s refreshing to see CURE’s approach. It will be interesting to see how CURE evolves as it expands and reaches new customers.

Shortlink for 'Reduce Your Insurance Costs? There’s An App For That'

It’s long been an established rule of the auto insurance industry: by keeping rates fairly uniform, people who drive their cars less are, on average, paying more for their insurance based on use than heavy drivers. One San Francisco-based tech company, however, is aiming to change that for good.

How it Works

Metromile is a new startup that’s packed a one-two technological punch to save drivers money on their insurance: installing a small GPS device that attaches to your car, the company records your actual mileage. That gets sent back to Metromile, who can charge a lower, per-mile rate through their insurance brand under National General Insurance Group.

Smartphone, Smart Car: Smart Insurance

Meanwhile, Metromile takes it even further with their new smartphone app: it uses that same GPS data to help you calculate routes and avoid street-cleaning areas to avoid parking tickets.

The entire system is designed around saving low-mileage drivers money, which is not typically the focus of traditional insurance companies. For many carriers, since low-mileage drivers pay more on aggregate for their insurance, they are subsidizing higher-mileage drivers.

Meanwhile, the device also tracks diagnostics on the vehicle, making any car function as a smart car– and one that becomes easier to maintain, thus making it an even safer bet for insurance companies.

Is Per-Mile Insurance a Winning Proposition?

Metromile allows drivers to use their diagnostics system free, in exchange for a monthly message telling them how much they would have saved with Metromile.

This leads to a problem for traditional insurance carriers: if companies switch over to per-mile billing and charge lower-mileage drivers based on usage, they’d have to compensate for the higher-mileage drivers by passing those costs on to them. The entire auto insurance system as understood today would be substantially strained, and this allows Metromile far more control over its niche.

Metromile isn’t available everywhere–as of this writing, it’s available in four states – but it’s growing quickly enough to change the auto industry in short order.

70% of drivers in America drive less than 10,000 miles a year: that’s a very large market to tap into. If Metromile succeeds in its goal of bringing per-mile insurance to the masses through convenient apps and technology, it could spell big changes in auto insurance as the industry knows it.